                                 CODE OF VIRGINIA

PROTECTION OF PAYORS, BONA FIDE PURCHASERS, AND OTHER THIRD PARTIES; PERSONAL
LIABILITY OF RECIPIENT (§ 64.2-2206)

A. A payor or other third party is not liable for having made a payment or
transferred an item of property or any other benefit to a beneficiary designated
in a governing instrument who, under this chapter, is not entitled to the
payment or item of property, or for having taken any other action in good faith
reliance on the beneficiary&#8217;s apparent entitlement under the terms of the
governing instrument, before the payor or other third party received written
notice of a claimed lack of entitlement under this chapter. A payor or other
third party is liable for a payment made or other action taken after the payor
or other third party received written notice of a claimed lack of entitlement
under this chapter.
			Written notice of a claimed lack of entitlement shall be mailed to the main
office or home of the payor or other third party, or to the registered agent of
either, by registered or certified mail, return receipt requested, or served
upon the payor or other third party in the same manner as process in a civil
action. Upon receipt of the written notice of a claimed lack of entitlement, a
payor or other third party may pay any amount owed or transfer or deposit any
item of property held by it to or with the court having jurisdiction of the
probate proceedings relating to the decedent&#8217;s estate, or if no
proceedings have been commenced, to or with the court having jurisdiction of
probate proceedings relating to decedents&#8217; estates as provided in &#xA7;
64.2-443 or 64.2-502. The court shall hold the funds or item of property and,
upon its determination under this chapter, shall order disbursement in
accordance with the determination. Payments, transfers, or deposits made to or
with the court discharge the payor or other third party from all claims for the
value of amounts paid to or items of property transferred to or deposited with
the court.

B. A person who purchases property for value and without notice, or who receives
a payment or other item of property in partial or full satisfaction of a legally
enforceable obligation, is neither obligated under this chapter to return the
payment, item of property, or benefit, nor liable under this chapter for the
amount of the payment or the value of the item of property or benefit. But a
person who, not for value, receives a payment, item of property, or any other
benefit to which the person is not entitled under this chapter, is obligated to
return the payment, item of property, or benefit, or is personally liable for
the amount of the payment or the value of the item of property or benefit, to
the person who is entitled to it under this chapter.
			If this chapter or any part of this chapter is preempted by federal law with
respect to a payment, an item of property, or any other benefit covered by this
chapter, a person who, not for value, receives the payment, item of property, or
any other benefit to which the person is not entitled is obligated to return the
payment, item of property, or benefit, or is personally liable for the amount of
the payment or the value of the item of property or benefit, to the person who
would have been entitled to it were this chapter or part of this chapter not
preempted.

HISTORY: 1994, c. 475, § 64.1-104.7; 2012, c. 614.